THE HBM: WEN, SBUX, YUM, KONA, BWLD, CHUX

THE HEDGEYE BREAKFAST MENU

 

Notable macro data points, news items, and price action pertaining to the restaurant space.

 

MACRO

 

Consumer

 

University of Michigan Confidence came in at 57.8 for September versus expectations of 57.

 

Commodities

 

National restaurant chain companies have ethanol tax subsidies in their crosshairs as they push lawmakers to end the Volumetric Ethanol Excise Tax Credit as a means to help reduce the country’s debt, according to thehill.com.

 

Subsectors

 

Food processor stocks have been performing strongly over the last two weeks, outperforming peer subsectors on a one-day, one-week, and two-week duration.  Food retail stocks underperformed .

 

THE HBM:  WEN, SBUX, YUM, KONA, BWLD, CHUX - subsectors fbr

 

 

QUICK SERVICE

 

WEN CEO Brolick appeared on CNBC this morning, showcasing the new burger and discussing the company’s prospects.  He underscored growth outside North America as a goal for the company.  Brolick sees same-store sales up 1-3% this

year.

 

SBUX CEO Howard Schultz, speaking in Madrid, said that Brazil is a “big opportunity” for the company and also sees more stores in Western Europe over the long-term.

 

YUM is the best company to work for in China, according to Fortune magazine. 

 

 

CASUAL DINING

 

KONA, BWLD, and CHUX gained on accelerating volume Friday.

 

THE HBM:  WEN, SBUX, YUM, KONA, BWLD, CHUX - stocks 919

 

 

Howard Penney

Managing Director

 

Rory Green

Analyst


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